EUR/USD is waiting to test 1.0800 one more time

I have been repeating many times that EUR will drop more since the Russia-Ukraine war started. Fundamentally, EUR is under pressure as Russian invaders on Ukraine create threats for Europe.

Sanctions against Russia spiked the Oil and gas prices in Europe. So, it is easily understandable that the inflation in Europe will cross over their estimate.

Moreover, European countries are spending more on the defense sector and their security. Investing in defense than the economic sector is not good for a country.

So, it is expected that their decision may hurt the European economy. Though ECB president Lagarde may deliver some hawkish statements, higher energy prices will hurt Europe's economic condition.


Technically, EUR/USD breaks below the trendline support and stabilizes below the 20, 100, and 200 moving averages that indicate EUR/USD has started its downtrend again.

1.1000 was the trendline support zone, and it has broken and stabilized below the trendline. So, as long as EUR/USD will be below the trendline support, it can test firstly 1.0900 and after breaking below 1.0900 will open the door for 1.0800.

On the other hand, if EUR/USD manages to close and stabilize above 1.1150, we may see another uptrend in the EUR/USD. But I think it is hard based on the current fundamental situation.

Note: We should keep in mind that EUR/USD dropped a lot so that we may see sudden profit-taking.